QuickBooks Online Products and Services List

QuickBooks Online Products and Services List

Written by Charley Blewett

Digital marketing guy, WordPress website designer using the Divi Theme, and content author. The Divi Theme allows me to spend more time on designing and writing content.

May 10, 2021

The QuickBooks Workflow

List-based Accounting Software

In the QuickBooks Online or QBO world, your company’s Products and Services list is an important item to set up and maintain well from the start. It is the basis for creating your estimates to gain new customers, track inventory if you are a retail or manufacturing enterprise, and describe and charge for your service offerings. These items will also transfer to invoices sent to your customers so that you get paid for your company’s time, expertise, and services.

Categories of Products and Services

QuickBooks Online Products and Services information

There are four types of Products and Services to use depending on your type of business. If you are a service business and do not sell or resell products, you will only have Service type of list items in your company file. Retailers might have Inventory and Non-inventory items and a contractor might have both Service and Non-inventory items. During the company set up process, QuickBooks will ask you about what your business does to help you determine what kind of categories are commonly used in your industry.

The four Products and Services Information categories are:

Inventory
Inventory is listed on your Balance Sheet as a Current Asset. It is assumed to be sold within one-year. Your sales price minus your cost equals the Cost Of Goods Sold or COGS and is used on the top line of the Income Statement to get the Gross Profit for your company. You may have to collect sales tax depending on your state.
Non-inventory
A typical use is when you resell products as a distributor to the end user. You may have to collect state sales tax. You are not warehousing the products. COGS will apply if you markup these products.
Service
Service-based companies will have a few items listed here. Contractors, professional firms, and other service providers will use this category. Anything you charge for that is not a product would be created and listed here.
Bundle
Once you get the individual Products and Services items created and if you sell a group of items as a package, this is where you will set this feature up. It will shorten the process of creating Estimates and Invoices. One group name and you will have selected the group with one click.

QuickBooks Desktop Versions

There are a few key difference if you are using the Desktop versions of QuickBooks accounting software. I will address this topic another day and share some images of the Desktop version workflow.

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